Personal RA and SARS

ballade

Active Member
Joined
Jan 29, 2013
Messages
54
Hello,

Help Please!

I have a personal RA that I get the tax benefit immediately via my work payroll. When does SARS expect me to invest the money, immediately or anytime before the tax year closes? I am thinking should hold off a bit till the dust has settled, yes I am aware that now is the time to buy but I was slowly building up my emergency fund and with the way things are maybe I should use the RA to build emergency fund quicker and once the dust settles I pay in the amount.

Thanks.
 

Daruk

Honorary Master
Joined
Jul 18, 2008
Messages
43,397
Hello,

Help Please!

I have a personal RA that I get the tax benefit immediately via my work payroll. When does SARS expect me to invest the money, immediately or anytime before the tax year closes? I am thinking should hold off a bit till the dust has settled, yes I am aware that now is the time to buy but I was slowly building up my emergency fund and with the way things are maybe I should use the RA to build emergency fund quicker and once the dust settles I pay in the amount.

Thanks.
I'm confused. How do you get tax benefit from your office of it's not paid into the RA on your behalf by them? What cash do you have that still needs to be invested?
 

ballade

Active Member
Joined
Jan 29, 2013
Messages
54
Office is the pension fund. Personal RA is an individual thing that I submitted to my office. Each month when I get paid I pay the money into my RA.
 

signates

Executive Member
Joined
Dec 8, 2009
Messages
5,359
Hello,

Help Please!

I have a personal RA that I get the tax benefit immediately via my work payroll. When does SARS expect me to invest the money, immediately or anytime before the tax year closes? I am thinking should hold off a bit till the dust has settled, yes I am aware that now is the time to buy but I was slowly building up my emergency fund and with the way things are maybe I should use the RA to build emergency fund quicker and once the dust settles I pay in the amount.

Thanks.
You are in for a world of hurt with SARS as it should be paid into the RA before 29 Feb 2020 if it was deducted in the last tax year.

I run a payroll and also offer this to staff if they have an RA directly with one of the providers. I do however insist on monthly confirmation that the funds were in fact paid into the RA.

Both you and the company could be in trouble with SARS if the company passed on the tax benefit without ensuring that the employee was making the RA contributions.
 

ballade

Active Member
Joined
Jan 29, 2013
Messages
54
You are in for a world of hurt with SARS as it should be paid into the RA before 29 Feb 2020 if it was deducted in the last tax year.

I run a payroll and also offer this to staff if they have an RA directly with one of the providers. I do however insist on monthly confirmation that the funds were in fact paid into the RA.

Both you and the company could be in trouble with SARS if the company passed on the tax benefit without ensuring that the employee was making the RA contributions.
Hi, Thanks. This is what I wanted to find out. Tax year 2020 was sorted on time. March 2020 now was the one I was second guessing myself.
 

supersunbird

Honorary Master
Joined
Oct 1, 2005
Messages
51,003
Hello,

Help Please!

I have a personal RA that I get the tax benefit immediately via my work payroll. When does SARS expect me to invest the money, immediately or anytime before the tax year closes? I am thinking should hold off a bit till the dust has settled, yes I am aware that now is the time to buy but I was slowly building up my emergency fund and with the way things are maybe I should use the RA to build emergency fund quicker and once the dust settles I pay in the amount.

Thanks.
Pay as per normal, or if you really want, split the payment to twice a month, now is the time to buy, the dust rarely settles, and you need superb luck to buy in a the bottom.

 

Mimen

Senior Member
Joined
Oct 1, 2011
Messages
618
There is a lady called Tarryn at this company. She is an independent financial advisor,no not the type that sells you an RA or a policy. She/ they charge by the hour, it's not cheap. I'm in my 50s and saw her about 3 to 5 years ago. What an incredible investment I made. I'm no millionaire but I can now see my money growing.
 

Mimen

Senior Member
Joined
Oct 1, 2011
Messages
618
Whatever you do. Google and ask around several times to select an independent financial advisor.. NOT someone that is going to sell you a policy. Someone that will give you a range of financial advice.
 
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